Question: A 20 -year maturity bond that makes coupon payments annually has a duration of 10.152 years, convexity of 159.69, and coupon rate of 8%. The

A 20 -year maturity bond that makes coupon payments annually has

A 20 -year maturity bond that makes coupon payments annually has a duration of 10.152 years, convexity of 159.69, and coupon rate of 8%. The bond sells at a yield to maturity of 6%. If the market rate drops by 100 basis points, what would be the price change (in \$) according to the duration-with-convexity rule

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